Panorama of the Luxembourg Microfinance Investment Fund Sector

This presentation, at the Luxembourg Microfinance Week, introduces the concept of microfinance investment fund (MFIF) Sector. It states that MFIF is:

• A specific corporate structure set up to invest in microfinance assets;
• An Investment vehicle for social or commercial investors, who act as shareholders or as lenders.

The presentation highlights that:

• Currently there are 41 MFIFs with:
  • Total assets of 981 million;
  • Total Microfinance portfolio of 542 million (disbursed).
• About 70% of the assets of these funds are development oriented or mainly funded by development finance institutions;
• Very few funds are truly targeted at private and institutional investors.

It further provides basic details about various MFIFs. These include:

• Dexia Micro-Credit Fund;
• responsAbility Global Microfinance Fund;
• Axa World Funds;
• La Fayette Investissement;
• Dual Return Fund;
• Vision Microfinance Sub-Fund (Project);
• Equity Fund for Southeast Europe (Project);
• Saint-Honor Microfinance (Project).

Finally, the presentation discusses:

• Attractiveness of Luxembourg as a domicile for MFIFs;
• Natural attractiveness of Luxembourg in the investment funds business;
• Ways to make Luxembourg act as a catalyst in the emergence of this new asset class.